Canada BOC Overnight Rate Decision 09/10/09

9:00am (NY Time) CA BOC Rate Decision   Forecast 0.25%      Previous 0.25%
ACTION:  USD/CAD  Depend on Market Condition

BOC (Bank of Canada) council members meet 8 times a year and discuss where to set their current Interest rate. Since interest rate is directly related to inflation, it is probably THE MOST HIGH IMPACT news for traders who trade CAD crosses.  But since there are absolutely no expectation for a surprise cut or hike release, market will most likely concentrate on the accompanied statement by BOC Governor.

BOC Governor Carney will deliver a statement immediately after the interest rate decision, which may or may not speculate on Canada’s economic outlook.  However, with recent heavy appreciation of the CAD and its impact on Canadian economy, Governor Carney had expressed his concerns previously and may use this rate statement to possibly verbal intervene CAD.  But this is speculation on my part, and it may or may not take place.

As the market condition at the release time may be difficult to speculate now, I’ll have to make a judgment then.  As usual I’ll be trading this release live and post the results back.  Hopefully we’ll make some pips from the live market as the CAD has been exceptionally strong lately, a consolidation or correction should take place soon.

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UPDATE:  Market didn’t move much after the release, therefore I decided it is probably for the best to stay out of the market…  We are getting the same rhetoric and not much change of tones from the accompanied statement… therefore instead of forcing a trade, the best option is to stay out.

Related posts:

1. Canada BOC Overnight Rate Decision 10/20/09
2. BOC Interest Rate Decision 07/21/09
3. BOC Overnight Rate Decision (Interest Rate Decision) 12/08/09
4. UK BOE Official Bank Rate Decision 09/10/09
5. UK BOE MPC Official Bank Rate Decision 11/05/09
6. UK BOE Official Bank Rate Decision 03/04/2010
7. BOE MPC Official Bank Rate Decision 10/08/09
8. Forex Analysis For UK BOE Interest Rate Decision 08/05/10
9. Trade Plan For RBA Interest Rate Decision 09/07/10
10. RBA Cash Rate Decision 11/30/09 (Interest Rate Decision)

Tagged as: bank of canada, BOC, CAD, Canada, canada council, current interest rate, economic outlook, Governor Carney, high impact news, Interest, Interest rate, interest rate decision, Overnight Rate, pips, Rate Decision